New Options Trading for Marvell Technology: Insights on January 2025 Contracts

Investors in Marvell Technology Inc (Symbol: MRVL) are facing exciting new options as trading began today for January 2025 contracts. At Stock Options Channel, our YieldBoost analysis has pinpointed noteworthy contracts on the MRVL options chain—specifically one put and one call option that may be of interest.

Exploring the Put Option: $89 Strike Price

The put contract with an $89.00 strike price currently holds a bid of $3.90. An investor who sells this put option would be agreeing to buy MRVL shares at $89.00 while also collecting the premium. This situation effectively lowers the purchase price of the shares to $85.10 (before broker fees), making it a potentially appealing choice compared to buying shares at the current price of $89.83 each.

This $89.00 strike price reflects a roughly 1% discount compared to Marvell’s current trading price. As a result, there is a likelihood that the put contract may expire worthless, with current analytical data suggesting a 62% probability of this outcome. Stock Options Channel will continue to monitor these odds and provide updated charts on our website under the contract detail page. If the contract does expire worthless, the premium could yield a 4.38% return on the cash commitment—equating to a notable 36.35% annualized return, a metric we categorize as YieldBoost.

Below, a chart illustrates the past twelve months of trading for Marvell Technology Inc, indicating where the $89.00 strike is positioned within that timeframe:

Analyzing the Call Option: $93 Strike Price

Now, looking at the call options, the $93.00 strike price currently bids at $5.40. If an investor buys MRVL shares at the present price of $89.83, they could sell this call option as a “covered call,” committing to sell their shares at $93.00. Including the premium collected in this scenario would yield a total return (excluding any dividends) of 9.54% if the stock is called away on the January 2025 expiration (before any broker commissions are deducted).

However, any substantial increase in MRVL shares could mean the investor misses out on further gains. Therefore, analyzing Marvell’s trading history and business fundamentals is essential. The following chart displays MRVL’s trading history over the past twelve months, highlighting the $93.00 strike in red:

The $93.00 strike price also represents about a 4% premium to the current trading price. Consequently, there is a chance that this covered call may also expire worthless, allowing the investor to retain both their shares and the collected premium. Current data indicates a 48% probability of this scenario. Stock Options Channel will continuously track these odds, providing updates and insights on our website. If the covered call expires worthless, the premium could equate to an additional 6.01% return for the investor or an impressive 49.87% annualized—once again known as the YieldBoost.

The put option carries an implied volatility of 51%, while the call option has an implied volatility of 50%. In contrast, the actual trailing twelve-month volatility, calculated using closing prices over the last 252 trading days along with today’s price of $89.83, sits at 50%. To explore further put and call options worth considering, visit StockOptionsChannel.com.

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Also see:

• Metals Channel
• Funds Holding MZOR
• Institutional Holders of QDIV

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.